Attorney interview left me with more questions

[stray]

Hello everyone, thanks for this wonderful place.

I believe BK7 is for me. I survived 3 foreclosure attempts and now have a good modified mtg. I have steady income for the past 2 yrs, but it's about 1/2 what I used to make.

Unsecured debt: $27,000

We have very little in assets. The equity in the house is w/in our allowed exemption. The problem is that we have several old vehicles:

Car: $1,550 (mine)
RV: $3250 (mine & husband's name)
Truck: $1236 (husband)
Motorcycle: $640 (husband)
Trailer: $800 (husband) - don't know if that's considered a vehicle, it is titled but wasn't required by state law to be.

Husband can't let go of the RV, I think it's a security thing since we were almost homeless last year.

I thought I had a really great attorney lined up based on research/reviews. At first, he didn't show up for the appt, then apologized and met me at the office after I left a voice mail. He was opening his mail as he was talking to me. He had me convinced I should do a BK13 because of the vehicles and told me total filing was $500 + I would pay $150/mo for 3 yrs. I reviewed the paperwork he emailed after the meeting and saw "In Oregon, the Court sets the pre-file attorney flat fee at $3500.00."

I was about to give up the whole thing, but after reading more here, I've decided to try another interview w/ a diff attorney and try to get back to the BK7.

I think I may be able to use "tools of the trade" and the "wild card" exemptions to cover the vehicles, just need an attentive attorney to advise. I loved the "Tactical Bankruptcy Manual" posted here. I wish Nick Thompson was in my state.

I'm just wondering if anyone else has seen that type of court set fee for the BK13?

[Drazil65]

Hi, welcome and glad you are here! Lots of good stuff here. First, during all of our interviews with potential attorneys we had at least 2 that talked about nothing except doing a 13. We knew we did not want to or need to do a 13, like you I had done alot of research and knew we were good with a 7. Second, the fee for a 13 seemed to be about double from a chp 7 fee. We were quoted around $3500 from both of the chp 13 pushing attorneys I believe. Because the fees are wrapped up in the chp 13 payments over time and there is a bunch of paperwork and monitoring I think the fees tend to be much higher, at least from I could gather.

Keep interviewing and gathering information, read everything you can here (sounds like you are off to a good start) and do what you know is best for you and your family. Stick around here, some great people with good stuff. Good luck!

[TheBajan]

Welcome to the forum!! I haven't seen this so specifically. Here in Michigan, we were told by more than one attorney that the state regulated how much the attorney fee can be. Each case is different though and sometimes specifics of a case can cause it to be more. For example, we paid $500 more than the normal fee due to needing to file a separate plea for a lien strip of our second mortgage. I don't think I've heard of anyone getting away with just $500 for the whole fee.... especially for a 13 which typically is higher than a 7.

Our very first interview with an attorney was a similar situation to yours. We had an appointment early (9am) and by 9:30 the attorney wasn't even in the office yet. We let the office assistant know we where on a time schedule as my husband needed to go to work and she called him at home. Fifteen minutes later he showed up. We were able to spend 20 minutes with him before we had to leave. With that, we never even considered hiring him after that. IMO, if he has that little regard for his clients before he's been hired, he's not the lawyer I want in my corner. Keep looking. There are good atty's out there but you have to be patient. Go to several free consultations and don't take your checkbook or any form of payment. Even if you find someone you really feel comfortable with, you shouldn't give them a retainer on the spot. You need time to really think it over and perhaps call their office back with a few questions on the phone. This will help you get an idea of what it will be like if you call for something after they have been retained.

Cheers and welcome!

[Tater]

Hi stray,

First welcome to the forum My husband and I were you are now just a few weeks ago. We had five consults before we chose our attorney. One automatically put us into a 13 based on our income and didn't really seem to want to fight for "us" to be her clients. Like the others said, schedule other consults until you find the right attorney for your situation. Finding the right attorney was probably one of the hardest parts of this process for us.

The attorney we did choose really evaluated our situation and took notes during the free consult. She explained how the process fit our situation since everyone is different. We didn't retain her right away but it wasn't long for us to choose her. We knew she would fight for us and she has. When she quoted us her fees for both chapters, 13 was much more expensive. There just seems to be a lot more work involved and it is ongoing for a period of 3-5 years. I'm sure someone can better explain this to you.

Just know that you are not alone during this process. This forum has been a place of great comfort and knowledge for us. Just know things will get better, it has for us!

[HHM]

Just understand, if you go the chapter 7 route, it will be more expensive out of pocket for you.

What would be your argument that the vehicles are "tools of trade". To do so, they must actually be used "primarily" for work. Oregon's wild card seems pretty sparse, so you do have a vehicle issue. If you want to keep the vehicles, it is either chapter 13, or your come up with the "cash" to buy the non-exempt asset out of the chapter 7.

The attorney is correct, in nearly all districts (probably all, but I don't have 1st hand knowledge, so I am hedging), the courts do set a minimum fee for chapter 13, and a chapter 13 allows a portion of the fee to be paid through the chapter 13.

[jst4f]

You have given us another great example of why it is important to interview several attorneys.

Keep interviewing and building up interview questions. BK13 v. BK7 is very case dependent so go to the interviews with complete and accurate information regarding you situation.

Take the time to value your vehicles correctly. They should at a quick sale value and not retail. Look for threads on this site for ideas on how to value them.

BK is an important business decision so do your research and interviews so you take the path that is most beneficial for you.

[stray]

Thank you everyone here for your real world advice. I will be interviewing more attorneys. I think this first interview was such a disappointment because no matter how prepared I thought I was, I was still a little... okay, whatever you say -ish. And if I had a check with me, I hate to say, I may have written one, so yes, Bajan, I will be sure not to have one with me since I can't be trusted. The past 4 years have taken its toll on me, and with the last few weeks of BK research, I may be a little exhausted.

I'm working on finding better values for the vehicles, especially the RV. I can't find a trade-in value for it, only low retail. Maybe because it's so old (1993).

Thanks everyone.

[lillymarlene]

Hi Stray, Welcome. I really like your avatar, is that a Maine Coon? There is lots of great advice here. Not saying that you want or have to, but if you end up doing a 13 it's really not that bad.

At the time I filed, I had a vehicle issue, too. My state was only allowing a $700 automobile exemption. I wasn't sure I could find something that would actually run at that price. My car was valued at about $4,800 and I would not have been able to pay the trustee about $500 a month for 6 months in order to keep it. So I can see a chapter 7 costing a lot more upfront. Of course shortly after I filed, my state changed that exemption to $7,500.

Well, good luck in whatever you decide.

[stray]

Thanks lillymarlene, I am keeping all options open. I saw in another post that your state originally had only $700 for a vehicle, that's awful. My car's got body damage, oil leak, etc. But at least I know the car and know what to expect (pretty much.)

Avatar is a recent re-occurring visitor to my backyard. Pretty Maine Coon girl that obviously used to belong to someone. I'm posting her on CL to see if anyone recognizes her. You've got a nice variety in your pic.